Why is the price of electricity more volatile

Assignment Help Business Law and Ethics
Reference no: EM131241274

1. Why is the price of electricity more volatile than that of other energy sources?

2. Why is the historical data approach appropriate for pricing a weather derivatives contract and a CAT bond?

3.‘‘HDD and CDD can be regarded as payoffs from options on temperature.'' Explain this statement.

Reference no: EM131241274

Questions Cloud

What is meant by hdd and cdd : What is meant by HDD and CDD? - How is a typical natural gas forward contract structured? - Distinguish between the historical data and the risk-neutral approach to valuing a derivative.
What is the net force on the 105-kg block : The frictional force exerted by the floor on the 105-kg box is 35 N and the frictional force exerted by the floor on the 40-kg box is 20 N. In this problem, orient your axes such that the right direction is positive and the left direction is negat..
Conduct the same amount of heat : It takest1= 11.8-s to conductQ= 32.8-J of heat across the rod. How much time would it take to conduct the same amount of heat if half the length of the rod were replaced with a material with conductivity κ2=n·κ1, wheren= 4.2?
What is the payoff from a call option on the cumulative cdd : What is the payoff from a call option on the cumulative CDD during July with a strike of 250 and a payment rate of $5,000 per degree-day?
Why is the price of electricity more volatile : Why is the price of electricity more volatile than that of other energy sources?  - Why is the historical data approach appropriate for pricing a weather derivatives contract and a CAT bond?
What is the period of the asteroid''s orbit about the sun : An "astronomical unit" (AU) is equal to the Earth's semimajor axis in its orbit around the Sun, or 1.50 x 10 11 m. An asteroid is discovered which has a semimajor axis of 5.6 AU. What is the period of the asteroid's orbit about the Sun?
Analyze various elements of film : You will be analyzing a movie selected from the AFI's 10 Top 10 list. The film you choose can be one that you have previously analyzed in this course. While you are allowed to choose a film that does not come from the AFI lists, you are strongly e..
Explain analyses you carry out to value a forward contract : Suppose that you have 50 years of temperature data at your disposal. Explain carefully the analyses you would carry out to value a forward contract on the cumulative CDD for a particular month.
Compression length will the scale read zero : At what compression length will the scale read zero? Express your answer to two significant figures and include the appropriate units.

Reviews

Write a Review

Business Law and Ethics Questions & Answers

  When these invoices were compared with the plant purchasing

you have completed your investigation on allegations against a plant employee of an acquired corporation lakes inc.

  Is megans law a good law

Is Megan's Law a good law? (Consider the ideal characteristics of the criminal law.) Is Megan's Law fair to sex offenders who have served their prison sentences (i.e paid their debt to society)

  Does this article change your impression of supreme court

Describe their respective viewpoints. Does this article change your impression of the Supreme Court? Why or why not

  Define real property

Answer to question needs to be 150 words or more:1.  You have likely noticed that many products are similar.  For instance, there is a "generic" of almost everything.  How dissimilar does something have to be in order not to violate any laws such as ..

  Is the contract between ripoff and slide enforceable

Slide Pty Ltd ('Slide') is a newly registered company which provides skiing equipment for hire at Mount Buller. The directors of Slide are Alison, Bob and Chris. Is the contract between RipOff and Slide enforceable

  Discuss three areas of civil law

Discuss three areas of civil law that you would change and three areas you would retain, with explanations "why" and "how" for each

  Theories of crime and criminality

Theory is like a guide or map, it helps us make sense of phenomena - such as crime - by providing explanations for what we see happening around us. Choose any TWO theories of crime and/or criminality (featured in the unit) and explain how these th..

  What are three essential security policies

What are three essential security policies for a traditional state university? Explain. How do these policies differ from the policies needed at a corporate office

  Specify at least one way that a company with which you are

evaluate the likelihood of traditional corporations using social responsibility as an effective competitive strategy.

  Identify the legal issue in the case

Log into WestlawNext and use the default search box feature to locate this court opinion (737 F.2d 784). Provide the Bluebook citation, and then (in your own words) identify the legal issue in the case, state the court's conclusion as to that issu..

  The applicability of the bill of rights to the states

Fourth, Fifth, Sixth, and Fourteenth Amendments of the United States Constitution and The applicability of The Bill of Rights to the states via the Fourteenth Amendment

  Explain two primary crime data sources

Compare and contrast the two primary crime data sources used in the United States, i.e., the Uniform Crime Reports (UCR) and the National Incident-Based Reporting System (NIBRS)

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd